CAR SALES REFLECT NEED FOR DEMAND BOOSTERS IN BUDGET

CAR sales, a key indicator of overall economic demand, presented a mixed bag during calendar year 2024.

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Total retail sales grew 9 percent to touch a record 26.1 million units, surpassing the pre-pandemic peak of 25.4 million units in 2018. so, the industry made a full recovery from the lockdown slump. What’s unsettling is the performance of some sub-segments. Growth in passenger vehicle sales fell to a four-year low as car makers struggled to sustain the postpandemic growth momentum. Preliminary data shows passenger vehicle sales grew at 4.5-4.7 percent—the slowest rate in at least four years—to slightly over 4.3 million units. One could argue that the slowness was partly due to a relatively high base the year earlier. But what’s undeniable is that demand for cars priced under 10 lakh is moder